You are here: Home » Budget » News » Economy
Business Standard

Skilling rural youth gets Rs 1,500 crore boost

Jaitley highlighted that less than 5% of India's potential work force gets skill training to be employable

Chaitanya Mallapur| 

Finance Minister Arun Jaitley announced the creation of a separate ministry for skill development of rural youth and allocated Rs 1,543 crore for the year 2015-16.

Jaitley, while presenting the first full union of the Bharatiya Janata Party-led government, highlighted that less than 5% of India’s potential work force gets skill training to be employable.

IndiaSpend had earlier reported, that only 2% (nearly 9 million) Indian workers are formally skilled. And only around 7% of the population above the age of 15 years receive vocational training.

Read our full coverage on Union Budget

The average age of the Indian youth is expected to be 29 years by 2020, the lowest in the world. While it is said that the world will experience a shortage of young population by around 56 million by 2020, India will have a surplus young force of 47 million at that time.

Ministry of skill development | Create infographics

The government under the skill development and entrepreneurship scheme has launched Kaushal Vikas Yojana (Skill Development Programme) allocating a sum of Rs 1,350 crore. A separate allocation of Rs 150 crore has been made for the North East Region under the plan.

The government also plans to enhance the employability of rural youth under the Deendayal Upadhyay Gramin Kaushal Yojana. The DDU-GKY scheme was earlier known as the Aajeevika skills or National Rural Livelihood Mission under the Ministry of Rural Development.

Let us look at the budgetary allocations for rural skill development schemes since 2012-13.

Budgetary allocations 2012-13 to 2015-16 | Create infographics

It is interesting that the government plans to enhance rural employment through skill development but the budgetary allocation has declined over the years.

The allocation has declined by 30% from Rs 3,563 crore in 2012-13 to Rs 1,077 crore in 2015-16.

Why the need?

According to National Skill Development Corporation (NSDC), a public-partnership (PPP) initiative aimed at promoting skill development through for-profit vocational institutions, here is requirement of 120 million skilled personnel in the non-farm sector between 2013 and 2022.

Let us look at the number of candidates trained and employed in the last three years under the programme.

Candidates Trained and Placed, 2012-13 to October 2014, under DDU-GKY. (Top 10 states)
State Total Candidates Trained during FY 12-13 Total Candidates Placed During FY 12-13 Total Candidates Trained During FY 13-14 Total Candidates Placed During FY 13-14 Total Candidates Trained During FY 14-15 Total Candidates Placed During FY 14-15
Andhra Pradesh 12,863 12119 84242 56,177 4744 363
Odisha 15,236 12,768 22359 14,213 3552 1748
Jammu and Kashmir 7,301 5,950 13426 10,093 7386 4267
Bihar 8,105 8,718 12231 7,496 5291 2349
Uttar Pradesh 31,468 18,584 12038 9,647 2611 1629
Madhya Pradesh 32,062 20,077 11313 8,784 1518 987
Tamil Nadu 14,527 12,687 9244 2,089 13539 6415
Chhattisgarh 14,933 10,986 6863 5,129 527 161
Jharkhand 12,075 7,491 6377 4,326 1925 887
Maharashtra 10,397 8,071 3929 2,866 0 0
Total 2,17,997 1,62,552 2,01,019 1,37,417 46,998 23,001

Source: LokSabha

In the last three years, over 400,000 candidates have been trained of which 300,000 have been placed under DDU-GKY.

Andhra Pradesh is the leading state to have trained over 100,000 candidates followed by Odisha with 41,000 candidates. Of these trained, Andhra Pradesh could provide jobs to just 68,000 and Odisha to 28,000 youth.

It is also interesting to know that around 20 ministries and departments of the central government are implementing 73 skill development schemes for youth. IndiaSpend had earlier reported that 7.6 million people were trained under various government ministries and departments in 2013-14.

So, it would be interesting to see how the government multiplies the required skilled force by 2022, now that it has created a new Ministry for Skill Development.


  • Kaushal Vikas Yojana – this scheme will focus to up-scale and align skilling initiatives of the country. Under this scheme, various skill development and entrepreneurship activities/sub-schemes will be funded to suit the needs of the and society.

  • Deendayal Upadhyay Gramin Kaushal Yojana- this scheme allows skilling in a PPP mode and assured placements in regular jobs in an organisation not owned by the skilled person, including foreign placements, placements by Champion employer (with assured career progression), placements through industrial internship, and placements on completion of long-term skilling courses.

Source:LokSabha/UnionBudget is a data-driven, public-interest journalism non-profit

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, March 02 2015. 16:37 IST